Effect of Level of Vertical Integration on Firm Value The Case of Listed Companies in Thailand in SET100

Abstract

This research aims to study an impact of corporate vertical integration on firm value and also study effects of industry types on relationship between vertical integration and firm value. This study examines 262 firms-year observations between 2013 and 2015 in SET 100 of the Stock Exchange of Thailand from 6 industry groups by using multiple regression analysis. This study measures level of vertical integration by Value Added to Sale and also measures firm value by Tobin’s q. Results show that the level of vertical integration has a positive effect on firm value and almost all industry types affect such relationship.